Derivative Gains
This query is : Resolved
Guest
Guest
(Querist)
09 July 2011
An Assessee in trading in derivative market instruments (both Equity and Commodities) and the net effect from trading in commodities is gain and whereas from equity instruments is loss.
Now my question whether the net impact of the such trading activities (which is the gain) is to be taxed as gain/profits from speculative business or under the head capital gains.
Whether in any case long term capital gains can arise in such activities
Which section of the IT Act will deal with such a situation and which section deals with the carry forward or set off such losses??
Waiting for the valuable suggesstions from the friends and experts out there at CCI....
Thanks in advance
Now my question whether the net impact of the such trading activities (which is the gain) is to be taxed as gain/profits from speculative business or under the head capital gains.
Whether in any case long term capital gains can arise in such activities
Which section of the IT Act will deal with such a situation and which section deals with the carry forward or set off such losses??
Waiting for the valuable suggesstions from the friends and experts out there at CCI....
Thanks in advance
09 July 2011
Loss from derivates (equity) is 'normal business' loss.
Gain from derivatives (commodities) is 'speculative business' profit.
Gain from derivatives (commodities) is 'speculative business' profit.
Message likes :
2 times
Guest
Guest
(Querist)
09 July 2011
Is there any particular section dealing with such a situation????
Thanks
Thanks
10 July 2011
SECTION 43(5) DEALS WITH THE SITUATION
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- Regarding Applicability of Tax Audit u/s 44AB
- Renovation exp. in flat by family member
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- TDS on TRUST
- New GST registration for new place of business.
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared
Getmyca Consultant Pvt Ltd
New Delhi
CA Inter
View Details
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
CCI
Pro
CAclubindia
